The Company computed basic net income per share based on the weighted average number of shares of common stock outstanding during the period. The Company computed diluted net income per share based on the weighted average number of shares of common stock outstanding plus potentially dilutive common stock equivalents outstanding during the period. For the purposes of this calculation, stock options, restricted stock units, performance stock units, and stock sold through the ESPP are considered common stock equivalents.

A reconciliation of the numerator and denominator used in the calculation of the basic and diluted net income per share is as follows (in thousands, except share and per share amounts):


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Numerator:
Net income	$	34,811	$	45,270	$	67,395	$	84,493



Denominator:
Weighted average shares used to compute net income attributable to common stockholders:
Basic	39,353,965		38,834,917		39,314,912		38,699,307
Potential dilutive stock-based options and awards	218,094		411,036		257,435		514,720

Diluted	39,572,059		39,245,953		39,572,347		39,214,027
Net income per share:
Basic	$	0.88	$	1.17	$	1.71	$	2.18
Diluted	$	0.88	$	1.15	$	1.70	$	2.15

For the three and six months ended June 30, 2026 and 2025, an immaterial number of outstanding stock-based awards were excluded from the computation of diluted net income per share because their effect was anti-dilutive.